Faculty Publications

Title

The adequacy of fixed asset disclosures under U.S. GAAP

Document Type

Article

Keywords

Disclosure, Financial analysis, Fixed assets

Journal/Book/Conference Title

Research in Accounting Regulation

Volume

25

Issue

2

First Page

149

Last Page

156

Abstract

Prior to 1995, the U.S. Securities and Exchange Commission (SEC) required publicly-traded, capital-intensive registrants to prepare detailed supplemental schedules summarizing the activity in fixed asset-related accounts. This study examines these previously-mandated schedules and illustrates how current aggregated reporting requirements potentially conceal insights that could be gained with finer information. This is a significant issue, as current disclosures under International Financial Reporting Standards (IFRS) are similar to the former SEC requirements. The analysis supports the conclusion that stakeholders in capital-intensive U.S. firms are at an informational disadvantage relative to stakeholders in similar firms reporting under IFRS. © 2013 Elsevier Ltd.

Original Publication Date

11-1-2013

DOI of published version

10.1016/j.racreg.2013.08.002

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